Comments on: Subprime lendershttps://blog.timesunion.com/readandreact/202/the-subprime-lenders/
A place to share your thoughts, criticisms and comments.Tue, 24 Dec 2013 01:58:20 +0000hourly1https://wordpress.org/?v=4.9.4By: James Cronenhttps://blog.timesunion.com/readandreact/202/the-subprime-lenders/#comment-2938
Mon, 16 Jul 2007 01:56:26 +0000http://blogs.timesunion.com/readandreact/?p=202#comment-2938One of the cornerstones of modern finance is that those willing to underwrite greater risk will receive greater returns.

Though I am not an economist, it seems to me that the availability of easy credit at reasonably low rates is another agent propping up home prices. When these adjustable-rate mortgages increase in monthly cost, it’s no wonder that those who were barely able to afford the mortgage in the first place can no longer pay.

It is unfortunate that the Guardian employees have lost their jobs. Unfortunately, a company that takes serious risks by seeking business with subprime clients lives on a knife’s edge. The Guardian employees, while not economists, should have at least understood the risk they were taking by going to work each morning.

Regulation would not have helped. At best, regulation would have limited Guardian’s business by restricting their clientele. At worst, regulation may have knocked Guardian out of business altogether. Those homebuyers with bad credit should be given a chance to redeem themselves (but at a price), and subprime lenders fill that need.